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The Four Seasons Health Care group has reached an agreement with creditors over the firm's massive debts. The firm hammered out a deal with its main lender, the Royal Bank of Scotland (RBS), and other creditors, that will halve the £1.55bn it owes in a debt-for equity swap. The deal will see the state-backed bank own a 40% share of the care group, which will be saved from bankruptcy. The firm announced huge debts at the start of the year but its chief executive, Dr Pete Calveley, moved quickly to deny there were any plans to close any of its homes. According to the firm, it has a strong underlying business performance, as admissions are at record levels and occupancy rates have risen to 88.5%. Dr Calveley said the restructuring represented a major step forward and gave the firm a more robust capital structure. ‘The remaining debt matures in September 2010 and we will immediately start work on a long-term solution. As always, we will continue to be single-minded in our attention to improving our service offering and developing our business.' Four Seasons owns or operates more than 400 care homes and centres in England, Scotland, Northern Ireland and the Isle of Man, looking after more than 15,000 people. It is expected that the RBS will hold on to the investment until the market improves. The organisation this week announced the appointed of Kevin Roberts as its director of strategy. Mr Roberts was previously part of Bupa Care Services senior management team.

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BUSINESS

Brighter times forecast as Four Seasons secures deal

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